* World shares hit six-week low on Fed concerns
* Home Depot, Best Buy shares rise after results
* Futures up: Dow 3 pts, S&P 4 pts, Nasdaq 5.25 pts
By Rodrigo Campos
NEW YORK, Aug 20 U.S. stock index futures edged
higher on Tuesday following the longest losing streak for
equities so far this year, with trader focus on retail shares as
top names report earnings.
A gauge of global equity markets hit its
lowest level in six weeks, tracking the S&P 500 index's Monday
close, as unease about an expected cut in U.S. stimulus and
related gains in bond yields left investors on edge.
Equity trading continues to be linked to U.S. Treasuries,
with higher yields pressuring stocks. The yield on the benchmark
10-year note came in slightly up at 2.83 percent after hitting
2.9 percent on Monday.
"This has been a technical pullback, and with the 10-year
yield near 3 percent we are pretty close to reversing it," said
Peter Cardillo, chief market economist at Rockwell Global
Capital in New York, pointing to what he called a buying
opportunity on U.S. equities.
Home Depot, Best Buy and J.C. Penney lead a string of
retailers posting results, and their shares all rose in
Cardillo said better results in some of the retailers could
be behind the slight uptick in futures, but the market continues
to be weak short-term after closing below 1,650 on Monday.
"The technical outlook worsened and we could still test
1,635/1,645" on the S&P 500, he said.
The S&P closed below its 50-day moving average for a second
straight day and at its lowest since July 8.
S&P 500 futures rose 4 points and were above fair
value. Dow Jones industrial average futures rose 3
points, and Nasdaq 100 futures added 5.25 points.
Home Depot shares gained 3.6 percent in premarket
trading after the world's largest home improvement chain raised
its yearly outlook after posting a profit beat.
Shares of Best Buy rallied more than 16 percent in
premarket trading after the world's largest consumer electronics
chain reported a higher quarterly profit.
Urban Outfitters shares gained 8.9 percent
premarket, a day after the apparel retailer's quarterly profit
beat market estimates.
J.C. Penney shares gained 3.4 percent premarket
after it reported same store sales fell 11.9 percent in the
second quarter, during which it reverted to a promotions-heavy
strategy to try to halt a sharp sales decline.
China-based Trina Solar reported a smaller quarterly
loss as it shipped more solar panels to newer markets such as
Japan, China and India, and its shares rose 4 percent premarket.